Vietnam will use Japanese bullet train technology in a 56 billion USD national railway link, an official said Thursday, with Japanese companies in line for multi-billion dollar contracts.

The project will see the construction of a 1,560 kilometre high speed rail link between the capital Hanoi and the southern commercial hub of Ho Chi Minh City.

'The Vietnam government has decided to adopt the Japanese 'Shinkansen' train technology at a cabinet meeting,' said Soichi Matsumoto, an official at Japan's trade ministry.

The new rail link is the latest announcement by Vietnam's government to improve infrastructure in the country and follows on from plans to build a rail link from Vietnam through Myanmar to Manipur in northeast India and an extension to the Ho CHi Minh City metro service.

As infrastrucuture and services improve in Vietnam, the country will surely start to give Thailand and Indonesia a run for their money when it comes to tourism.